Many times we have to tell new clients that they should wait days, months or sometimes even years to file their bankruptcy case for the best possible outcome. Why? Because the timing of recently incurred debt has a lot to do with the outcome of your bankruptcy.
Let’s discuss just a few scenarios:
Credit Card Usage
If you have used a credit card for a luxury good (plane tickets, cruise tickets, hotels that are not work related, restaurants, etc.) in the last ninety days, you may need to wait to file your case. These purchases will be presumed to be “fraudulent” since it would seem that you were running up the card in anticipation of the filing of your bankruptcy case. Read more in-depth details here.
Transfer of ANY Property
Don’t be fooled into thinking that transferring any form of property to a relative or family member will help in your bankruptcy. It actually has the opposite effect as a transfer of property prior to bankruptcy triggers the “fraudulent transfer” issue and that can be a big issue with the timing of your bankruptcy filing. Read more in-depth details here.
Too Much Income/Not Enough Income
This is where timing is very important since your income is such a big part of your bankruptcy case. Your income is going to impact how much you have to pay or don’t have to pay to your creditors. Filing at the wrong time could dramatically affect whether or not you have to pay anything to your creditors, and if you do have to pay your creditors something, how much you have to pay them. Read more in-depth details here.
The Bottom Line
These are just some of the scenarios where “timing” can significantly affect your case. Everyone’s circumstances are different so every bankruptcy case is different. As experienced Bankruptcy attorneys we will evaluate your case carefully to get the best possible outcome for you.
Do you have any other questions on how we can help you file a bankruptcy? Give us a call at 732-302-9600 or fill out our online consultation form.